The Transformative Power of Openness and Honesty in Organisations
In an era of rapid change and unpredictability, candour emerges as an increasingly crucial leadership quality. Characterised by openness and honesty, even in challenging or unpopular circumstances, candid leaders are poised to cultivate trust, inspire confidence, and drive innovation in an environment that values transparency and authenticity.
The Candour Crisis
A Glassdoor survey of over 2,000 employees revealed that 62% of respondents value honesty and transparency from their leaders above any other leadership trait (Glassdoor, 2017). However, a Harvard Business Review study (Edmondson et al., 2021) found that only 25% of employees feel at ease discussing candidly in their workplace. This deficiency in open communication not only erodes trust and collaboration but also impedes innovation and organisational growth. Addressing this candour gap is vital for leaders striving for success in the 21st century.
The Candour Advantage
The Harvard Business Review study finds that employees who work under candid leaders are more inclined to contribute ideas, speak up, and collaborate effectively. Organisations that promote candour witness enhanced productivity, employee engagement, and innovation (Edmondson et al., 2021). Google’s Project Aristotle (2017) identified psychological safety, cultivated through open communication, as the most crucial factor for team success (Duhigg, 2016). These findings highlight the significance of candour as a foundational element of effective leadership.
Candour in Action
Australian business leaders have also acknowledged the importance of candour. For instance, Atlassian, a leading Australian software company, has established a culture of open communication and transparency. Co-founders Mike Cannon-Brookes and Scott Farquhar have integrated candour into their leadership style, enabling employees to question decisions and propose alternative perspectives. This approach has been pivotal in Atlassian’s rapid growth and international success.
Likewise, the Commonwealth Bank of Australia (CBA) has undergone considerable cultural change in recent years, emphasising transparency and accountability. CEO Matt Comyn has fostered open and honest conversations, empowering employees to voice concerns and contribute to the bank’s ongoing transformation. This dedication to candour has been instrumental in restoring trust and enhancing performance at the CBA.
Fostering Candour in Your Organisation
To nurture candour within your organisation, consider adopting the following strategies:
- Lead by example: Exhibit your commitment to candour by being transparent about your own mistakes and vulnerabilities. Encourage direct feedback and ensure employees feel secure when raising concerns or providing constructive criticism.
- Establish a safe environment: Develop a workplace where employees can openly share thoughts, ideas, and concerns without fearing retribution. Recognise and reward those who participate in constructive dissent, emphasising the value of diverse viewpoints.
- Practice active listening: Stimulate open dialogue by asking probing questions and genuinely considering the responses. Use candour as an opportunity for personal and organisational growth and development.
The Future of Candour in Leadership
As global complexities and interdependencies intensify, the need for candid leaders will only escalate. By championing openness, honesty, and transparency, leaders can adeptly navigate the challenges of the 21st century and secure the long-term success of their organisations.
References:
Duhigg, C. (2016). What Google Learned From Its Quest to Build the Perfect Team. The New York Times Magazine. Retrieved from https://www.nytimes.com/2016/02/28/magazine/what-google-learned-from-its-quest-to-build-the-perfect-team.html
Liu, Y., & Keller, R. T. (2021). How Psychological Safety Impacts R&D Project Teams’ Performance: In a psychologically safe workplace, R&D project teams perform better, more readily share knowledge and engage in organizational citizenship behavior, and are less likely to leave. Research-Technology Management, 64(2), 39-45.
Edmondson, A. C., & Bransby, D. P. (2023). Psychological Safety Comes of Age: Observed Themes in an Established Literature. Annual Review of Organizational Psychology and Organizational Behavior, 10, 55-78.
Seijts, G., de Clercy, C., & Miller, R. (2023). Character and Trust in Crisis Leadership: Probing the Relationships Among Character, Identification-Based Trust, and Perceptions of Effectiveness in Political Leadership During the COVID-19 Pandemic. The Journal of Applied Behavioral Science, 59(1), 127-154.
